Institutional investors that have tried hedge funds apparently like them—the latest Preqin survey of 70 such investors shows 30% will definitely increase their allocations to hedge funds over the next three years while 60% are considering doing so.

From the current issue of

The ratio calendar combination spread couples two ratio calendar spreads, one using calls and the other using puts. The call strike prices are higher than the put strike prices. This strategy is complex and profit is limited, but if a high amount of time value is involved in the short positions, that profit can be substantial and risk is still limited.